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PUC splits on US West merger State regulators worry, but can't prevent the deal Wire and staff reports Investors say the merger of US West and Qwest is a boon to the West and its growing technology base, but employees of the two communications giants are sweating the details and Oregon regulators are divided about whether the deal is good for the state's consumers. Company officials say more than 25 million US West customers -- including a million in Oregon -- will see little immediate impact from the proposed merger, which still must be approved by shareholders and regulators. The two companies announced Monday that US West, a Denver-based Baby Bell, will merge with the Denver-based Qwest Communications International Inc. in a stock swap worth $34.7 billion, or $69 a share. The announcement marked the end of competition between Qwest and another company, Global Crossing, to acquire US West. The Qwest name eventually could replace US West on phone bills in 14 states, including Oregon, Colorado, Arizona, Idaho, Iowa, Montana, Minnesota, Nebraska, New Mexico, North Dakota, South Dakota, Utah, Washington and Wyoming. Analysts said Qwest may have to divest its long-distance service in the US West regions to get the go-ahead from regulators. The deal won't need a blessing from one of US West's biggest critics: The Oregon Public Utility Commission. While a pending merger between Pacific Power and ScottishPower has had to undergo extensive review by the Oregon PUC, the commission's powers are structured differently for utility companies and telecommunications companies, so no review will occur. The PUC will have the same rate and customer service controls over Qwest that it does over US West. Though commissioners are essentially powerless to affect the deal, that hasn't stopped them from speaking out on it. "The name will change but not much else will for Oregonians," PUC Chairman Ron Eachus, a leading critic of US West, said in a statement. "In fact, it could make things worse. Eachus' criticism was not echoed by fellow commissioner Joan Smith. "This matchup makes more sense for Oregon and customers than the Global Crossing proposal did," said Smith in a statement. "I believe a new service culture and Qwest interest in broadband (increased Internet capacity) mean good things for Oregon's telecommunications future." Oregonians' biggest complaint against US West has been its service. The company ranked last among the seven Baby Bells in customer satisfaction, according to a 1998 J.D. Power and Associates survey. Qwest officials made no specific commitment to improving US West service. Officials said the combined 64,000-employee workforce would not face significant job cuts, though some functions could change. Qwest said it would forgo previous plans to hire an additional 3,000 workers for the cutbacks. "We're somewhat reassured ... but I've never seen a done deal a done deal," said John R. Thompson, vice president of the District 7 Communications Workers of America, which represents 36,000 US West workers. "At least it's not a hostile takeover," he said. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA